Insights Blog

Exploring the future of investment with the thoughts of today

Short Is Still Sweet: SDOFI Takes the Cake in Today’s Fixed Income Regime

Our SDOFI strategy has a proven track record of shining across a multitude of market environments and has consistently generated positive total returns since 2009. This includes 2021 and 2022 where the fixed income market landscape was difficult to navigate. The structure of our strategy enabled us to find a way to preserve capital for investors despite the sharp move higher in rates.

The Liquidity Advantage of Investment Grade Private Credit

The investable universe of private markets is rapidly growing and evolving. Our team has identified several observable megatrends that are in our view already reshaping private markets, creating both risks and opportunities. In private credit, we anticipate meaningful increases in digital infrastructure, alternatives and transmission utilities. As primary markets evolve, one can expect secondary markets to expand alongside.

Judging the Success of SFA Portfolios

In our view, the SFA program is entering a new phase - one in which the focus transitions from portfolio design to portfolio monitoring. If our conversations and experience serve as a representative sample set, many of these portfolios are custom fixed income strategies, often cashflow-matching, that are built benchmark-agnostic.

Index Plus: Capturing the Missed Opportunities of Standard Passive Investing

Our Index Plus strategy seeks to exploit these inefficiencies by implementing a low active risk approach to passive investments. For large, long-term institutional investors with a core passive strategy, Index Plus offers a step forward by unlocking the potential to add increased performance while maintaining low base index fees.

When History is a Guide – The Case for Commodities Today

The challenges of a half-century ago bear an uncanny resemblance to the risks that we face today. Institutional investors may need to consider allocating to an alternative asset class to protect portfolio returns. Using history as a guide, we believe commodities may be an appropriate fit.

Income Inequality: Working Together to Improve Equality

We firmly believe that as companies are inextricably linked with the societies in which they operate, income inequality can no longer be an issue for governments alone to resolve. We must all work together to help reduce inequality in all its forms.

SFA Program Update: What a Difference Two Years Can Make

The SFA program is a once-in-a-generation type of opportunity. The assistance may help many multi-employer plans avoid insolvency and extend retirement benefits for millions.

Navigating Fixed Income's Versatility

Today’s improved entry points to fixed income provide investors with ample opportunities to build diversified, opportunistic and durable portfolios. But unpredictable markets and elevated economic uncertainty calls for an active and flexible approach to security selection and portfolio construction.

Remembering Rho – How Higher Interest Rates Can Make Equity Hedging More Appealing

We believe put spread collars are a useful risk management tool in this market environment. We also remind plans to remember rho, too, because today’s elevated interest rates can make this classic equity protection strategy even more appealing.

Private Credit – The Calm Before the Storm

The private credit market has generally been resilient this year. The investment-grade and crossover space has seen decent deal flow, pricing discipline, strong premium and not forgetting a higher yield environment. Tighter credit conditions and bank retrenchment is likely to accelerate the shift towards private market financing, in our view.

Views and opinions expressed herein are as of the date published and may change based on market and other conditions. The material contained here is confidential and intended for the person to whom it has been delivered and may not be reproduced or distributed. The material is for informational purposes only and is not intended as a solicitation to buy or sell any securities or other financial instrument or to provide any investment advice or service. Legal & General Investment Management America, Inc. does not guarantee the timeliness, sequence, accuracy or completeness of information included. Past performance should not be taken as an indication or guarantee of future performance and no representation, express or implied, is made regarding future performance.